Cryptocurrencies like Ripple and Ether are facing some challenges from the financial experts who are looking at them Non-compliance financial securities and they violate the US securities law. A very experienced financial expert Gary Gensler who was a partner at an investment bank, Goldman Sachs, and he was also the financial regulator on Obama administration, and also held the position of financial chief for Hillary Clinton’s presidential campaign for 2016, said in an interview with the New York Times that cryptocurrencies such as Ether and Ripple are the unregistered securities. While on the other hand registered spokesmen for both of the securities said that both of these coins are not securities in the first place.
There is a strong case for both of them but particularly Ripple that they are non compliant securities but bitcoin and some others cryptocurrencies, like Litecoin and Monero can remain exempt from securities regulations due to the way it is decentralized, but this is not so clear in the case of Ether and Ripple. 2018 is going to be a very interesting time. Over 1,000 previously issued initial coin offerings (ICOs), and over 100 exchanges that offer ICOs, are going to need to sort out how to come into compliance with US securities lawGary Gensler
Gensler said that blockchains could replace the middleman in many financial industries and in 10 years from now cryptocurrencies will be in the financial system in a real meaningful way. And the U.S. Securities and Exchange Commission has started cracking down the non-compliance cryptocurrencies according to the US law.